The Benzoic Acid Market is expected to grow USD 902.3 million CAGR 5% during the forecast 2021-2030.
In the benzoic acid market overview, it is mentioned that its market growth is expected to reach an estimated USD 1,219 million by the year 2030. As for the beginning of the forecast period in 2017, the market value was around USD 868 million.
The main reason for this high growth rate expectation is the use of benzoic acid in a variety of industries. The most common ones include pharmaceutical end-use, food and beverages, and even chemical industries. It is a type of carboxylic acid that includes a lot of functional features, like antibacterial and antifungal effects. This naturally-formed compound is visible in a lot of fruits, like prunes, raspberries, plums, prunes, and cranberries.
Among the different industries, the food and beverages industries would likely affect the high growth rate mostly. Benzoic acid is effective against yeasts and molds. Also, it is a necessary ingredient in benzyl benzoate, phenols, and benzoyl chloride. Owing to this, the global benzoic acid market is anticipated to grow at a fast rate.
The recent Covid-19 pandemic did affect the benzoic acid market in separate manners. During the earlier months of 2020, production levels in this market dropped due to regional lockdowns and government restrictions. However, it later picked up in distribution due to the demand for pre-packaged food in the later months of 2020 and early 2021.
Insights from the Covid-19 period show changes in factors related to this market, like the purchasing pattern, customer behaviour, re-routing of supply chains, demands, etc. During the overall Covid-19 period, the financial profit range of this market was not high. That caused a fall of CDGR and market value estimation in the benzoic acid market forecast.
In this analysis, many leading players in the benzoic acid market are mentioned and researched. Ganesh Benzoplast Limited is one of the key producers of benzoic acid in India. It supplies benzoic acid to various pharmaceutical and food & beverage industries.
The following list shows the names of the key companies who are covered in this report:
One of the main drivers of the benzoic acid market growth is the growing requirement of benzoic acid in the food and beverage industry. With the increasing focus on healthy living and eating, this demand growth was imminent. Current urbanization and economic development also affect the growth rate in this market, mainly in the Asia Pacific region. More people around the globe are opting for food products with preservatives. Plus, a lot of people depend on processed beverages and food types due to their fast-paced lifestyles. Benzoic acid is one of the key ingredients in such products and that is expected to affect the growth rate of the overall global benzoic acid market.
Manufacturers of packaged and processed food items are concentrating on food safety highly. Using food preservatives that contain benzoic acid would keep them fresh for longer. The sodium, calcium salts, and potassium content have antifungal properties that preserve food. It safeguards against yeasts and molds to a higher extent and bacteria to a lower extent. Also, this natural food preservative maintains the acidic pH value in beverages like sparkling drinks, fruit juices, and soft drinks as well. Moreover, benzoic acid works to preserve acidic food items like pickles.
All in all, these factors make the food and beverage industry a key driver for the growth of the benzoic acid market in the forecast period. Besides that, the use of benzoic acid derivatives also influences its overall market growth forecast. A benzoic acid market manufacturer can use this acid to prepare benzoyl chloride, benzyl benzoate, and phenols. The first one helps manufacture the second one, which is further used in insect repellents. Thus, these are key growth drivers in the benzoic acid market as well.
With the increasing changes in the lifestyle of communities due to regional advancement, urbanization, and capacity expansions, the high benzoic acid market growth is imminent in the future. A lot of factors can act as opportunities for the market, specifically the continuing rise in the demand for healthy packed and processed food. Furthermore, new advances and product developments would also boost the growth of this market in the forecast period. Many countries worldwide are using benzoic acid in their industries and would continue to utilize it as a more robust alternative. In the North American and European regions, the non-phthalate plasticizers are set to replace phthalate plasticizers completely. Benzoic acid is an active component in the former, and thus, its demand is expected to grow at a high rate in these regions.
There are some restraints to the benzoic acid market uses as well, seen in various regions and industries. While benzoic acid does have antifungal and antibacterial results, too much of it can harm health in particular ways. Some studies show that consuming foods with this acid for a prolonged period can hurt the digestive tract and lungs. Moreover, in particular regions, governmental regulations are in place against benzoic acid use. These regulations stipulate a limited addition of benzoic acid in packaged beverages and food items.
One of the main challenges visible in the benzoic acid market overview of the forecast period is the price of toluene. Toluene is a colourless, water-insoluble, and aromatic hydrocarbon liquid. It falls under the category of crude oils. It has links with a particular phenyl group, and benzoic acid is a useful component of this preparation. Generally, the price of raw materials, especially crude oils, is volatile in nature. So, the fluctuating price of toluene can badly affect the overall market growth of the benzoic acid market.
Moreover, in the developed economies, many companies are not using or limitedly using benzoic acid in their food preservative production. This, as well, is an anticipated challenge in market growth.
During the forecast period up to 2030, the benzoic acid market share is set to grow at a 5.9% CAGR. The net value of the market is anticipated to become USD 1,219 million approximately at the end of the forecast period. Changes in the global market trends, opportunities, governmental regulations, and more would affect the growing value of benzoic acid in several industries.
Also, further prediction on the market volume shows that the CAGR can go up to 5.21% and become 689.1 kilotons before 2030. It is important to mention that all of these are estimations, and the rates can rise and fall before the forecast period ends.
The demand for natural ingredients in the food market and overuse of packaged items would affect the value of the benzoic acid market. In the forecast period, the use of this acid in different industries is expected to increase in regions, like the APAC, the EMAC, and the Americas.
The segmented overview of the worldwide benzoic acid market focuses on four main bases- the application process, types of products, the end-user industry, and geography.
The market of benzoic acid is segmented based on its application in different products. Some of the common ones include benzoate plasticizers, benzoates, alkyd resins, animal feed additives, and benzoyl chloride. Also, benzoic acid is beneficial in various other applications as well, differing from industry to industry.
Different production methods are classified under the benzoic acid market for segmented analysis. Two of them are mentioned below.
Friedel-crafts reaction- Under this set of reactions, there are two subtypes, specifically acylation reactions and alkylation reactions. The substitution method for both reactions is electrophilic aromatic in nature.
Grignard reagents- This type of organomagnesium halide has a formula of RMgX. In the formula, ‘R’ represents aryl or alkyl group, depending on the benzene ring, and ‘X’ is a type of halogen. When a Grignard reaction occurs, a Grignard reagent is mixed with either aldehyde for a secondary alcohol formation or ketone for tertiary alcohol formation.
The three main types of end-user industries that utilize benzoic acid include the chemical industry, Pharmaceutical industry, and the Food & Beverage industry. Some other industries use benzoic acid as well but in minimum quantities.
The benzoic acid market forecast is estimated based on the analysis of different regions as well. These sections include North America, Latin America, Europe, Asia Pacific, Middle East and Africa. The forecast is further sub-segmented into 18 countries of these continents.
This report overview of the benzoic acid market gives the readers a detailed and comprehensive picture of the operations in the market, benzoic acid market trends, and daily industry functions. It segments the overall data into sub-part to make it more easy-to-understand for the readers. The segments are further analysed, focusing on the past condition of the benzoic acid market and possible growth prospects in the forecast period.
|Market Size||USD 902.3 million 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Application and End-Use|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Ganesh Benzoplast Limited (India), Tianjin Dongda Chemical Group Co. Ltd. (China), Choice Organochem LLP (India), Spectrum Chemical Manufacturing Corp. (U.S.), Hemadri Chemicals (India), Emerald Performance Materials (U.S.), Wuhan YouJi Industries Company Limited (China), Alfa Aesar, Thermo Fisher Scientific (U.S.), Avantor (U.S.), MP Biomedicals LLC (U.S.)|
|Key Market Opportunities||increasing changes in the lifestyle of communities due to regional advancement, urbanization, and capacity expansions|
|Key Market Drivers||
The benzoic acid market is expected to grow at a CAGR of 5% by 2030.
Out of the three main industries it is used in, the food & beverage industry uses benzoic acid in higher quantity. Thus, it would likely have the highest impact on the benzoic acid market growth during the forecast period.
According to research, the Asia Pacific region would likely have the highest impact on the overall benzoic acid market.
Some of the key leaders in the benzoic acid market are Hemadri Chemicals, Avantor, Ganesh Benzoplast Limited, and Tianjin Dongda Chemical Group Co. Ltd.